Research Of Financial Derivatives Supervisory System

The risk of financial derivatives has feature of complexity, sudden, systematicness and transactions of high leverage, which severely affect on financial stability. Before the financial crisis, there were some problems, the emphasis on macro-prudential supervision of financial derivatives’ regulation was not enough, micro-prudential supervision was imperfect. After the crisis, the United States, Britain and other developed countries have carried out a radical reform for financial derivatives legal regulatory system. Although the development degree of financial derivatives in our country is still relatively low, financial derivatives has a great significance for China’s financial sector deepening reform and opening wider. To catch up with developed countries’ financial industry, the financial derivatives is an important breakthrough. Therefore, regulation innovation of derivative products of China, from preventing systemic risk point of view to make derivative financial regulatory reform, so to establish a legal regulatory system laying equal stress on macro-prudential supervision and micro-prudential supervision becomes necessary.The first part makes a brief introduction of the financial derivatives, the legal property of financial derivatives is a contract, concluding three types, futures and forwards, options, swaps. Based on these basic types of financial derivatives, we can innovate unlimitedly. Takes CITIC Pacific event as example, describes how the risks of derivatives generate and result in losses to investors, as well as the event bring us to a correct understanding of the risk of derivative transactions, the important of establishing an effective internal control system and other lessons.The second part discusses the necessity of regulation of financial derivatives. On the one hand, the negative externalities of financial derivatives market resulted in an overflow of risk, easily lead to systemic risk. Information asymmetry makes the probability of increased risk, both requires a means of legal regulation of the derivatives market; on the other hand, financial derivatives’ characteristics of complex risk, as well as the role of the powerful financial market links, highly leveraged transaction, all are required from prevent systemic financial risk perspective to regulate financial derivatives.The third part from legislative perspective, from three levels of legal, departmental rules, normative documents to analyze the present situation of financial derivatives regulatory system, arrive at our financial derivatives regulatory system exists a lower-level legislation, insufficient attention on systemic risk, regulatory arbitrage, imperfect information disclosure system and other issues, causing a series problems for establishing the legal regulatory system of combining macro-prudential regulation and micro prudential supervision.The fourth part from the United States and Britain to start, on the basis of combing the two countries’ traditional regulatory system and their defects, and regulatory reform after financial crisis, comparing two countries’ financial derivatives from differences in regulatory system after the financial crisis, trying to seek useful experience for discussing the establishment of macro-prudential combining micro-prudential supervision regulatory system of financial derivatives.The fifth part as the conclusion part of this paper, talks about establishing macro-prudential regulator, and specifying its regulatory objectives and tools, from strengthening the internal control of financial institutions and improving the information disclosure system to perfect financial derivatives’ micro-prudential supervision. Optimize the configuration of derivatives’ regulatory power, design macro-prudential regulator and micro-prudential regulators coordination mechanism, eventually establish a financial derivatives regulatory system of combining macro-prudential and micro-prudential supervision.